Which Statement About Inflation Is Correct

question 145

Multiple Choice

Which statement about inflation is correct?

• A)Families are always hurt by inflation.
• B)Inflation "subsidizes" those who receive relatively fixed money income.
• C)The redistributive effects of inflation are arbitrary with respect to people and groups in society.
• D)Inflation will decrease the real value of property assets and increase the real value of fixed-value assets.

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Definitions:

Avoidance

A defensive or protective strategy aimed at preventing, evading, or escaping a perceived threat or undesirable situation.

Reinforcement Strategies

Techniques used to encourage and strengthen the desired behavior through rewards or consequences.

External Control

The regulation or influence of an individual's behavior by forces outside themselves, such as societal norms or laws.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.